JINJIANG HOTELS(SH:600754) EBSCN·2024-05-07 04:04Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [3]. Core Views - The company's performance in Q1 2024 exceeded previous expectations, leading to an upward revision of net profit forecasts for 2024 and 2025 by 23.7% and 8.2% respectively, with a new forecast for 2026 introduced [3]. - The company achieved a revenue of 3.206 billion yuan in Q1 2024, representing a year-on-year increase of 6.8%, and a net profit attributable to shareholders of 190 million yuan, up 34.6% year-on-year [3]. - The report highlights the company's efforts to improve operational efficiency and reduce management expenses, resulting in a decrease in the management expense ratio year-on-year [2]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 3.206 billion yuan, a 6.8% increase year-on-year, and a net profit of 190 million yuan, a 34.6% increase year-on-year [3]. - The company's non-recurring net profit was 62 million yuan, down 31.2% year-on-year, primarily due to increased interest expenses from foreign borrowings [2][3]. - The gross profit margin for Q1 2024 was 35.4%, a decrease of 1.2 percentage points year-on-year [2]. Operational Highlights - The company opened 222 new hotels in Q1 2024, achieving an 18.5% completion rate towards its goal of opening 1,200 hotels in 2024 [2]. - The total number of hotels increased to 12,595, with a net addition of 147 hotels [2]. - The report notes that the company is accelerating asset revitalization efforts, including the sale of a hotel for 1.655 billion yuan [2]. Market Conditions - Domestic RevPAR (Revenue per Available Room) faced pressure, with declines of 5.4% for full-service hotels and 1.6% for limited-service hotels in Q1 2024 [2]. - The report attributes the decline in domestic RevPAR to increased industry supply, with a 28% year-on-year increase in the number of chain hotels in China by the end of 2023 [2]. - In contrast, the company's overseas hotel performance remained stable, with a RevPAR of 35.65 euros, a slight decrease of 0.1% year-on-year [2].